What is the primary goal of fiscal policy?

Exploring Government Spending in Fiscal Policy

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Social Studies
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6th - 10th Grade
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Medium

Mia Campbell
Used 4+ times
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10 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
To mitigate fluctuations in the business cycle
To increase the national debt
To privatize government-owned companies
To increase the country's exports
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What role does fiscal policy play in the economy?
It solely focuses on reducing unemployment
It aims to control inflation rates
It seeks to stabilize the business cycle
It is used to increase the country's exports
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why doesn't expansionary fiscal policy increase GDP in a fully employed economy?
Because it takes resources from other sectors
Because it leads to inflation
Because it reduces private investment
Because it decreases consumer spending
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does government spending affect the economy during full employment?
It has no effect on GDP
It leads to significant GDP growth
It reduces public debt
It crowds out private investment
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What happens to GDP when government spending increases during a recession?
It increases by exactly the spending amount
It may increase by more than the spending amount
It decreases
It remains constant
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
During a recession, how can government spending lead to an increase in GDP?
By hiring unemployed workers, leading to a ripple effect of spending
By reducing taxes on large corporations
By cutting public welfare programs
By increasing interest rates
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the 'fiscal multiplier' effect?
The additional spending generated from an initial increase in spending
The reduction of government debt
The decrease in unemployment rates
The increase in taxes collected
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